How Are Mortgage Rates Determined?

March 28, 2010 by · Leave a Comment

Many people believe that interest rates are set by lenders, but the reality is that mortgage rates are largely determined by what is known as the Secondary Market. The secondary market is comprised of investors who buy the loans made by banks, brokers, lenders, etc. and then either hold them for their earnings, or bundle […]

How Do Mortgage Rates Move When The Fed Lowers Rates?

March 28, 2010 by · Leave a Comment

NEED PHOTO Lower mortgage rates is a common misconception that is perpetuated by the mainstream media perpetuates when the Fed makes an announcement of lowering rates. However, when the Fed cuts interest rates, mortgage rates tend to increase. Fed 101: According to Wikipedia: The Federal Reserve System (also known as the Federal Reserve, and informally […]